Zim launches new economic blue print next month
in [Physics]
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From: as on 4 Aug 2010 18:05 Zim launches new economic blue print next month http://www.zimonline.co.za/ by Caroline Mvundura Friday 19 March 2010 HARARE - Zimbabwe will next month launch a new blue print to succeed the Short Term Emergence Recovery Programme (STERP) hastily cobbled up in March 2009 following formation of a power sharing government between President Robert Mugabe and Prime Minister Morgan Tsvangirai. Officials from the Ministry of Economic Planning told ZimOnline on Thursday that the new Medium Term Plan (MTP) was expected to help spearhead the recovery of Zimbabwe's ailing economy up to December 2015. "The final draft of the MTP document will be edited, bound and the launch date will be on April 21 2010," said a government economist, who declined to be named because the new economic plan is not yet official. Officials said the new plan seeks to increase capacity utilisation in the manufacturing sector currently hovering between 40 and 45 percent and to increase investment in the economy. But the officials did not say how the government hopes to attract foreign investment while at the same time pursuing a controversial indigenisation policy that seeks to force foreign shareholders to cede controlling stake in their businesses to locals. Under the empowerment regulations announced last month by Indigenisation Minister Saviour Kasukuwere from Mugabe's ZANU PF party, foreign-owned businesses, including banks, mines and factories will be forced to sell a majority stake to locals by March 2015. The rules have been a source of controversy and besides dividing the unity government along party lines, they have rattled foreign investors who analysts say will continue to stay away from the country. The MTP, championed by Economic Planning Minister Elton Mangoma from Tsvangirai's MDC party seeks to establish a vibrant market and private sector driven economy and a large part of the financing and investment of programmes and projects under the plan is expected to come from the private sector through the public private partnerships. The ratio of investment to GDP is targeted to average 25 percent of GDP during the next five years while that of domestic savings to GDP is targeted to rise to the same level during the same time period. Other than high growth rates, the MTP will place a premium on job creation, poverty reduction and equity while also ensuring that balance is attained in development across all regions of the country. The policies, reforms and structural and institutional changes are aimed at transforming Zimbabwe from a primary product producer to a producer of diversified manufactured products. "The ultimate objective is to make Zimbabwe a growing, transforming and globally competitive developed economy, occupying its niche in the world economy. To achieve this Zimbabwe needs to draw lessons from its past economic performance, invest in acquiring new technologies, knowledge and ideas, entrepreneurship, research and development and innovations," said part of the draft MTP. The STERP was expected to stabilise the economy and lay the basis of a mid-to-long term recovery programme. While the economy has stabilised, the STERP has largely fizzled out after key Western donor governments and multilateral institutional declined to bankroll the programme demanding more political reforms. Zimbabwe's coalition government - that Mugabe and Tsvangirai agreed to form only because of pressure from southern African leaders - is seen as offering the country its best opportunity in years to turn around its economy after a decade of severe recession. But analysts remain skeptical about the government's long-term effectiveness, citing unending squabbles between Mugabe's ZANU PF and Tsvangirai's MDC parties and refusal by rich Western countries to provide financial support. - ZimOnline |